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2025 DAILYLAW 51752 (KAR)

M/S PURAVANKARA LIMITED v. STATE OF KARNATAKA

WP/1192/2021 · 2025-06-23

Sachin Shankar Magadum

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Judgment text

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- 1 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.1192 OF 2021 (LB-BMP) BETWEEN: 1. M/S. PURAVANKARA LIMITED (FORMERLY PURAVANKARA PROJECTS LTD.) A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.130/1, ULSOOR ROAD, BENGALURU-566043, REPRESENTED BY ITS AUTHORIZED SIGNATORY PRAVEENKUMAR. &PETITIONER (BY SRI. JOSEPH ANTHONY, ADVOCATE) AND: 1. STATE OF KARNATAKA URBAN DEVELOPMENT DEPARTMENT, VIKASA SOUDHA, BANGALORE-560 001, REPRESENTED BY THE CHIEF SECRETARY. 2. THE DEPARTMENT OF LABOUR VIKASA SOUDHA, DR. B R AMBEDKAR VEEDHI, BENGALURU-560001, REPRESENTED BY ITS UNDER SECRETARY. Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 3. THE DEPARTMENT OF PARLIAMENTARY AFFAIRS AND LEGISLATION VIKASA SOUDHA, DR. B R AMBEDKAR VEEDHI, BANGALORE-560001, REPRESENTED BY ITS SECRETARY. 4. BRUHAT BENGALURU MAHANAGARA PALIKE HUDSON CIRCLE, BENGALURU-560027, REPRESENTED BY THE COMMISSIONER. 5. JOINT DIRECTOR (TOWN PLANNING NORTH) BRUHAT BENGALURU MAHANAGARA PALIKE, N R CIRCLE, BENGALURU-560027. &RESPONDENTS (BY SRI. H.K. KENCHEGOWDA, AGA FOR R.1 & R.2; SRI B.S. KARTHIKEYAN, ADVOCATE FOR R.4 & R.5.) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH BYE-LAW 3.9 OF THE BANGALORE MAHANAGARA PALIKE BUILDING BYE-LAWS, 2003 AS UNCONSTITUTIONAL, ARBITRARY, ILLEGAL AND ULTRA-VIRES, IN THE INTEREST OF JUSTICE AND EQUITY, ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SACHIN SHANKAR MAGADUM - 3 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 ORAL ORDER The captioned petition is filed seeking for the following reliefs: "WHEREFORE, the Petitioners most respectfully prays that this Hon'ble Court be pleased to: a) Grant an order, direction or writ in the nature of Certiorari quashing Bye-Law 3.9 of the Bangalore Mahanagara Palike Building Bye- Laws, 2003 as unconstitutional, arbitrary, illegal and ultra-vires, in the interest of justice and equity; b) Grant an order, direction or writ in the nature of Certiorari quashing the Notification issued by the Respondent No.1 bearing No. UDD 3 TPP 2015 dated February 25, 2020 (Annexure E) insofar as the inserted Rules 37-A and 37-C are concerned; c) Grant an order, direction or writ in the nature of Certiorari quashing the circular dated August 14, 2020, bearing No. He.Ni. Ka.Pa.Ko/P.R/320/2020-21 issued by the Respondent No.4 (Annexure F) in so far the Petitioners are concerned. - 4 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 d) Grant an order, direction or writ in the nature of Certiorari quashing the Government Order bearing No. LD/300/LET/2006 dated January 18, 2007 (Annexure G) and the corrigendum order bearing No. LD/300/LET/2006, dated February 28, 2007 (Annexure H) issued by the Respondent No. 2 mandating upfront collection of labour welfare cess in so far the Petitioners are concerned. e) Grant an order, direction or writ in the nature of Certiorari quashing the Circular bearing No. He.Ni.Na.Yo/JD(N) /DM3/ PR/320/2015-16 dated September 04, 2015 (Annexure J) issued by the Respondent No.4 is so far as levy and collection of "Licence Fee'; f) Grant a Writ or order or direction, in the nature of Certiorari, quashing the Impugned Demand Notice bearing BBMP/Addl.Dir/JDNORTH/ 1005/20-21 dated January 08, 2021 by the Respondent No. 5 (Annexure A) as regards the demand made for :- " Scrutiny Fee at Serial No. 1; " Ground Rent at Serial No. 2; " License Fee at Serial No. 3; " Betterment Fees for Building at Serial No. 4; - 5 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 " Betterment Fees for Site Area at Serial No. 5; " Security Deposit at Serial No. 6; " Service Charge on Labour Cess at Serial No. 10; " Levy and Collection of surcharge to be paid to BWSSB, BDA and KSCB at Serial No. 11; " Levy and Collection of 5% surcharge to be paid to BBMP at Serial No. 12; and " Labour Cess." g) Grant an order, direction or writ in the nature of Mandamus directing the Respondent Nos. 4 and 5 BBMP to issue the sanction plan for construction of the Project in the Property, without insisting payment of Ground Rent, GST on Ground Rent, Betterment Charges for Building, Betterment Charges for Site, Security Deposit, License fee, Scrutiny fee, Cess for Water Supply Scheme, Surcharge for Formation Outer Ring Road, Cess for Improvement of Slum, Surcharge for Mass Rapid Transport System, Labour Cess and etc., and - 6 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 h) Grant such other reliefs as this Hon'ble Court deems fit in the above circumstances of the case, in the interests of justice and equity." 2. The Co-ordinate Benches of this Court, in W.P.No.23086/2022 and connected matters(herein referred to as <M/s Sapthagiri Shelters=) as well as W.P.No.36017/2018 and connected matters(herein referred to as <Sunderam Shetty=), have comprehensively adjudicated the issue involved and settled the controversy. In Sunderam Shetty and connected cases, the Co-ordinate Bench declared the levies of Ground Rent, License Fee, Building License Fee, and Scrutiny Fee under the relevant bye-laws as ultra vires the Act and quashed the Government Circulars dated 04.09.2015, 27.01.2017, and 30.03.2017. Similarly, in M/s Sapthagiri Sheltersand connected matters, the Co-ordinate Bench struck down the Karnataka Act No.01 of 2022 and Karnataka Act No.37 of 2024, holding that linking fees under Rule 37-A of the Karnataka Planning Authority Rules, 1965 to - 7 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 market/guidance value under Section 45-B of the Karnataka Stamp Act, 1957 is illegal. It further quashed all related Circulars and declared Clause 3.8 of the BBMP Building Bye-laws, 2003, pertaining to Ground Rent, as invalid. 3. The issues raised in the present writ petition are squarely covered by the above binding decisions, wherein the relevant bye-laws and government circulars have been set aside. 4. In light of the authoritative pronouncements, the present petition does not warrant separate adjudication and is liable to be allowed in terms of the operative directions issued in the aforesaid writ petitions. 5. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. - 8 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 (ii) The impugned demand notice dated 08.01.2021 issued by respondent No.5 as per Annexure-A is hereby set-aside. (iii) Respondent - BBMP is hereby directed to issue fresh/modified plan as the case may be. (iv) Respondent - BBMP is hereby directed to forthwith process the petitioner9s application seeking building license and sanction of the building plan, strictly in accordance with law. (v) It is made clear that the issuance of the building license and approval of the plan shall not be withheld merely on the ground that the BBMP is contemplating to file an appeal against the reported judgment. (vi) If the building license and sanction plan are issued, the same shall be subject - 9 - HC-KAR NC: 2025:KHC:21778 WP No. 1192 of 2021 to the outcome of any appeal that may be filed by the BBMP against the said judgment. Pending applications, if any, are also disposed off. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE VMB List No.: 2 Sl No.: 46